Promote propaganda, disseminate legal knowledge and identify disguised multi-level marketing businesses

Along with the development of genuine multi-level marketing enterprises, many types of disguised multi-level marketing have also appeared more and more with complicated developments. In order to proactively prevent and promptly identify disguised multi-level marketing forms and restore order in multi-level marketing activities, Thanh Hoa province has been implementing many solutions, including promoting the dissemination and dissemination of legal knowledge and identification of disguised multi-level marketing.

Promote propaganda, disseminate legal knowledge and identify disguised multi-level marketing businesses A conference to disseminate legal knowledge and identify disguised multi-level marketing was held in Nhu Thanh district.

According to the Department of Trade Management - Department of Industry and Trade, there are currently 20 enterprises registered for official multi-level marketing. In Thanh Hoa province, there are 16 units licensed to open branches with 25,000 participants. The list of these enterprises is posted on the website of the Department of Competition and Consumer Protection - Ministry of Industry and Trade for people to easily look up. However, the most worrying thing now is the trend of disguised multi-level marketing which is extremely complicated. Although the authorities have increased inspection and examination, people are still confused in identifying behaviors, leading to being lured into many disguised multi-level marketing tricks with not small losses.

From 2022 to present, along with distributing thousands of warning leaflets, coordinating with media agencies to open many specialized pages and columns to propagate the law on multi-level marketing activities, the Department of Industry and Trade and the police and market management sectors have organized dozens of conferences to propagate and disseminate legal knowledge, identifying signs of disguised multi-level marketing. It is estimated that about 3,000 cadres, civil servants, and representatives of all walks of life in localities in the province have been thoroughly informed about legal documents, identifying manifestations and disguised multi-level marketing behaviors.

Mr. Han Van Huyen, Vice Chairman of the People's Committee of Nhu Thanh district, said: "The qualifications and capacity of cadres and civil servants performing the management of multi-level marketing activities in the locality will be improved through specific training and coaching activities as above. Through this conference, the leaders, cadres and civil servants in the district have been equipped with more knowledge and skills to handle work related to disguised multi-level marketing activities. From there, they will be proactive in directing and handling situations that occur in the locality. We have also directed communes and towns to report in writing or via hotline when there are acts or manifestations of illegal multi-level marketing in the management area for timely handling."

In recent times, along with investigation and crime handling activities, the Provincial Police have also regularly advised and warned people not to participate in the activities of companies that show signs of business activities in the form of multi-level marketing. However, recently, in the whole country in general and Thanh Hoa province in particular, there has been an "alarming" situation that some enterprises, although newly registered for business, have quickly expanded their network of branches and representative offices in many provinces and cities. Notably, these enterprises are very ambiguous in production and business activities; in which the main activity is to advise individuals to contribute capital in the form of business cooperation contracts and are paid very high interest rates, possibly 40%, 60% or even up to 150%. The fields where this disguised manifestation is currently occurring are: Real estate business, event organization, cosmetics, functional foods... These businesses mostly take advantage of social networks such as Viber, Zalo, Facebook, YouTube... to spread business platforms under the name of startups and getting rich to lure people.

According to the Economic Police Department, Thanh Hoa Provincial Police, currently, taking advantage of loopholes in the State's policies and laws, many enterprises "quietly" build networks, organize to attract and entice ignorant people to invest money, materials to buy and sell poor quality goods, codes, locations for the purpose of profiteering, appropriating money and valuable assets. From the above content, Thanh Hoa Provincial Police recommends that organizations and individuals do not participate in activities in the form of: Investing in virtual booths on the internet; business cooperation contracts to contribute capital to invest in projects, invest in real estate, invest in cryptocurrency (virtual currency) ... to be paid bonuses, with attractive high interest rates. Because the profit paid to customers who contribute capital does not come from production and business activities but in the form of taking money from later contributors to pay earlier contributors. Therefore, this model has many potential risks of losing the assets of the capital contributors, and at the same time greatly affects security and order on a large scale if the company goes bankrupt or the company operator flees. When people discover the above signs of violations, they should immediately report them to the police for timely handling.

Article and photos: Tung Lam

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